...Woolworths Limited Business Model [pic] 7241MGT Business Process Models Major Assignment Semester I, 2005 Abstract The firm selected for this project is Woolworths Limited which is an Australian leading retail company made up of a number of businesses all providing the customers with quality, range, value and everyday low prices. Woolworths is built on a passion for retail, attention to detail, working hard, ensuring the safety of their valuable customers and people, and having fun. Woolworth’s mission is to deliver to customers a better shopping experience - each and every time. The project initially carries out preliminary business analysis where it recognizes the market structure and describes the value chain in that industry segment that earns the companies income. Further analysis has been done about the changes that have been done in this segment in past two decades. Also the challenges Woolworths faces from its competitors are described. It identifies Porter’s five forces model influencing the company viz. Substitutes, Rival groups, Buyers, Sellers and Potential New Entrants. The project has done the strategic analysis of the industry’s current position and identified the likely challenges Woolworths may face in the near future. It also studies the various risks which has impact on the company such as “Cyclical risk”, “Policy...
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...Growth Plans Woolworths' current business growth plan is built on four key strategic priorities. 1. Extend leadership in food and liquor 2. Act on our portfolio to maximise shareholder value 3. Maintain our track record of building new growth businesses 4. Put in place the enablers for a new era of growth A Changing Business Retailing never stands still - that’s what makes it so exciting and dynamic. Right now we’re in a period of substantial change as customers seek greater value and have more choices at their fingertips than ever before. Customers are now firmly in the driving seat of our business and their decisions and shopping behaviour are changing the way we operate. Woolworths is responding to this new era by laying the foundations for a new phase of growth and opportunity. We put the customer at the heart of our business, listening to what they want and creating new and innovative ways for them to shop with us. The future of shopping Customers now have the ability to shop when, how and where they want and that ability is literally in the palm of their hand. Mobile technology is rapidly changing how we view our world and giving us access to products and prices from around the world. We’ve recognised we need to keep up and understand that customers want to move seamlessly and effortlessly between physical and virtual stores to shop in a way that suits them. Every Woolworths business is becoming multi-option by using websites, mobile apps, virtual stores...
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...ABSTRACT In this valuation report, we will analyze the performance of Metcash and Woolworths (Australia) in the past six years from 2007 to 2012 and make some forecasts in order to aid investors in making decisions about investments between these two companies. Two methods of DCF valuation and relative valuation are used during the analysis. Firstly, we estimate FCFF with calculated WACC to determine the two companies’ stock price, comparing their actual current stock price. Secondly, we analyze P/E Ratio, P/S Ratio and EV/EITDA Ratio to make a comparison between the two companies and average industry. Our estimation will show that both Metcash and Woolworth are undervalued and suitable for investment 1. Overview : Metcash Limited(MTS) and Woolworths Limited(WOW) 3 1.1 Metcash Limited 3 1.2 Woolworths Limited 3 2. Metcash DCF valuation within FCFF approach 4 2.1 Weighted average cost of capital 4 2.1.1 Cost of equity 4 2.1.2 Cost of debt 4 2.1.3 Capital structure analysis 5 2.1.4 Effective tax rate analysis 5 2.2Estimation of FCFF 6 2.2.1 Growth rate expectation 6 2.2.2 FCFF and present value 6 3. Woolworths Limited DCF valuation within FCFF approach 7 3.1 Weighted average cost of capital 7 3.1.1 Cost of equity 7 3.1.2 Cost of debt 8 3.1.3 Capital structure analysis 8 3.1.4 Effective tax rate analysis 9 3.2 Estimation of FCFF 10 3.2.1 Growth rate...
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...Discussion and Evaluation of Woolworths Foods purchasing process Authors: Ian dlamini, Sne Byron Van Herder, Naseer Khan, Mohamed Kadar & Muhammad Moola, Executive summary Woolworths is one of the biggest retail stores in South Africa. Founded in the early nineteen thirties by Max Sonnenberg, Woolworths has grown to a retail giant with over four hundred stores throughout Africa and Middle East. Along with Woolworths being of such large proportions it now is listed on the Johannesburg Stock Exchange. Within our study of Woolworths we will be examining the purchasing process of this retail giant and in order to achieve this we will employ tools and techniques to simplify our study. This study will compromise of a detailed discussion, illustration and evaluation of Woolworths purchasing process and for the purpose of our study we narrow down the study to a smaller aspect of Woolworths namely Woolworths Food. As we look closer into exactly what is required we employ the use of tools to aid in our study. These will consist of a SWOT analysis of the company, a PESTLE analysis of the purchasing processes and a PORTERS five forces analysis. We will then narrow down the purchasing process to one area of Woolworths namely Woolworths Food and base our study on that. A concise discussion is to follow in which we outline the most important factors that influence the purchasing decision. Included in the factors to be mentioned within our investigation we would refer to...
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...Assignment 1-BSBHRM506A Woolworths limited is a major Australian Company with extensive retail interests throughout Australia and New Zealand. Woolworths is the largest food/retail company with well-known brands including Big W, Dick Smiths electronics and Dan Murphy’s. Woolworth’s strong Market capitalisation and sales are a key point in the Company’s growth. Woolworths is also a company that makes a significant economic contribution with more than 180,000 team members across metropolitan and regional Australia. It has annual contribution to the economy estimated to be in excess of $96 billion dollars and 652,400 full time equivalent jobs, training more apprentices than any other company in Australia. Woolworths in every state has its own structure, for example State Manager, Assistant Manager and Area managers. South Australia being the smaller state has 5 Area Managers for 85 stores. New South Wales being the larger state, has 16 Area Managers for 270 stores each managing between, 12-22 stores and employs 200 staff or more in each store. Each store is based around this structure to try and give the Store Managers as much assistance to help support their employees and in turn benefits the customers. To centralize their customers and their HR Management, Woolworths will use other divisions; for example, Big W will use some of the infrastructures from Dan Murphy’s. HR departments in large companies can get enormous amounts of employee inquiries that can...
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...1. Currently, the food retail industry is a highly competitive market in Australia as a great number of retail supermarkets are competing for the largest market share in this market, with giant retail companies such as Woolworths, Coles, IGA and Aldi sharing the main market. More so than ever, organizations need to offer customers value for money. Customers want the best quality products at the lowest possible prices. With such tough competition it is vital for organizations to understand what their customers want. Strategy management refers to the process of identifying, choosing and implementing activities that will enhance the long-term performance of an organization by setting direction, and by creating ongoing compatibility between the internal skills and resources of the organization, and the changing external environment within which it operates. Strategy competitiveness illustrates company’s outstanding competitive edge compared with its competitors due to the use of successful and suitable business strategy in terms of the business management, this is achieved when a firm successfully formulates and implements a value-creating strategy. Aldi has a no-nonsense approach to running its business. Whereas other food retailers have elaborate displays, additional services and promotions that draw customers into the business, Aldi’s core purpose is to ‘provide value and quality to our customers by being fair and efficient in all we do’ . Everything Aldi does is focused around...
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...1. By dropping prices and increasing product range, is Woolworths diluting its value proposition? No, Woolworths is not diluting its value proposition by dropping prices and increasing its product range. Own-brand products bring great value and perceived quality, synonymous with the Woolworths brand. Reduced input costs do not result in a product quality alteration and therefore I suggest that no negative impact exists. Reduced pricing to remain competitive during tough economic conditions is a necessary move. Lost revenues due to margin erosion can be replaced via additional product lines. Retail strategy continues to be aimed at the niche high-income market. Entry into the ‘black diamonds’ new market opportunity does not dilute the value proposition. - Represents a new market development and extension of product range within the higher LSM market. - Purchasing power of the new segment is relevant and cannot be ignored. - Value proposition supports offering within the new market. 2. When the economic conditions change for the better, should Woolworths withdraw some of the added products? Please Explain. No, Woolworths must not withdraw any of the added products. Before Woolworth introduced the added products, research and developments studies were conducted and it became apparent that there was the market for product range introduced New product lines shall never be seen as the cheaper substitutes, instead product line extension. Woolworth’s...
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...product range, is Woolworths diluting its vales proposition? Value proposition is a promise to be delivered by the company to the customer, a statement that summarises why a customer should buy their products. The CEO of Woolworths has stated clearly that their products will add more value on the basis of “quality, innovation, freshness and unique placements”. This value proposition is in line with the company’s strategic plan of providing good quality products, superior packaging and excellent customer relations. Woolworths has adopted a differentiation strategy, whereby it is out-competing its competitors based on these qualities. Thus in order for this company to continue having a sustainable competitive advantage over its rivals and continue to serve its niche high income and the newly discovered middle-income (Black diamonds) target markets, this strategy needs to also be maintained. For a company and its strategy to successfully compete, the company must continually scan the environment it operates in, ensure that its strategy is aligned with that environment, and ensure that the company has the capabilities to execute the strategy. Woolworths scanned the environment and acknowledged that the global economic recession was severely affecting its target market spending power and were as a result, loosing business to competitors like Pick ‘n Pay and achieving lower profit margins. Thus by lowering its product prices and adding more product lines, Woolworths ensured that their...
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...Individual Assignment Woolworths in Ghana Individual Assignment Woolworths in Ghana Executive Summary This report analyzes the current marketing strategies of Woolworths in Ghana from four perspectives: products, price, project and promotion. Also, it will briefly mention the company’s successful marketing strategy in other African countries. According to what Woolworths has accomplished in Ghana, the recommendations in this report are generated based on the findings and analyses of Ghana environment. In particular, Ghana’s social, political, legal and economic factors will be presented as they relate to the commercial atmosphere. The recommendations, which are meant to help Woolworths define its future development, are as follows: • Seek more opportunities in Ghana and open more Woolworths C&GM stores in Accra. • Utilize social media to build strong brand awareness among Ghanaians. • Maintain positive, healthy relationships with the government of Ghana for further development. Table of Contents Executive Summary 1 Table of Contents 2 Introduction 3 Company Description and Current Marketing Strategy Analysis 4 Company Description and Analysis 4 Scope and Limitations 5 Description of Current Marketing Strategy of Woolworths 5 Product 5 Place 6 Promotion 6 Price 6 Market/Business Environment Analysis and Recommendations 8 Economic 8 Social 9 Political 10 Legal 10 Reference List 12 Introduction Woolworths is a familiar retail...
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...Company Overview: The organization we choose for the research and our group report writing is Australia’s most popular retail industry Woolworths. We choose Woolworths supermarket on of the brand of the Woolworths Limited Australia. Woolworths limited is well known retail giant over Australia and New Zealand. Woolworths started its first business in city of Sydney by opening its first store in the basement of Imperial arcade in 1924.Current stage Woolworths operates many of the retail brands like Big W, Woolworths, Dan murphy, Cell master, BWS and many more. And it serves 2.4 million customers a week (Woolworthslimited.com.au, 2014). We choose Woolworth’s supermarket located at North Ryde in Macquarie centre, which is known as the store of destination of Woolworths. Store is located inside the Macquarie centre. Store is very popular store because of its largest fresh department with onsite production of the mood. This retail store can be taken as the largest organization where this store operates 24hr work including while trading and while closed. Store has 287 staff including casuals and part time and 14 salaried managers. Store weekly sales are 1.7 million dollar average and daily operating hour is 8 am in the morning till 10pm. One of our group members does works in the Woolworths supermarket store Macquarie centre. According to his experience and analysis during the working hours in that organization he was concerned and focused in the Larger number of employee has been...
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...Marketing Management (AMN442) Assignment Introduction Masters Home Improvement is the trading name of an Australian Home Improvement chain, operated by a joint venture between Australian Retailer Woolworths Limited and Mooresville, North Carolina (United States) based hardware chain, Lowe's.[2] Masters was created as a way for Woolworths Limited to crack into the hardware retail space, which has been historically dominated by Bunnings Warehouse, which is owned by arch rival Wesfarmers. The two companies already compete with each other with groceries and general merchandise. The brand name was announced on 2 May 2011,[3] coinciding with the launch of a website at masters.com.au.[4] Hans Hulsbosch, who has designed brand identities for Woolworths & Qantas designed the Masters brand and logo.[5] The first outlet, located in Braybrook, Victoria, opened to tradesmen on 31 August 2011, and the general public on 1 September 2011.[6] In the Sydney Morning Herald, CEO Don Stallings is attributed as saying that staff will be trained for at least 100 hours, and the stores will offer over 35,000 products.[7] Ways in which Masters will differentiate from its competitors include stores which are more brightly lit, more colourful with polished concrete, large colour signage and store displays, it aims to place more emphases on attracting female shoppers, buzzers scattered around the store which when pressed, will send a nearby staff member to that location to help out a customer,...
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...COMPANY PROFILE Woolworths Limited REFERENCE CODE: 2FF5536D-6BA6-4CE5-81DF-4EABB0A5A391 PUBLICATION DATE: 8 Jul 2014 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED. Woolworths Limited TABLE OF CONTENTS TABLE OF CONTENTS Company Overview..............................................................................................3 Key Facts...............................................................................................................3 SWOT Analysis.....................................................................................................4 Woolworths Limited © MarketLine Page 2 Woolworths Limited Company Overview COMPANY OVERVIEW Woolworths Limited (Woolworths or 'the company') owns and operates retail stores that sell food, liquor, fuel, general merchandise and home improvement products in Australia and New Zealand. It is headquartered in Bella Vista, Australia, and employs more than 197,000 people. The company recorded revenues (excluding financial income) of A$58,921.7 million (approximately $60,506.7 million) during financial year ended June 2013 (FY2013), an increase of 6.9% over FY2012. The operating profit of the company was A$3,594.6 million (approximately $3,691.3 million) during FY2013, an increase of 7.4% over FY2012. The net profit was A$2,259.4 million (approximately $2,320.2 million) in FY2013, an increase of 24.4% over FY2012. KEY FACTS ...
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...Woolworths Limited overview Woolworths Limited (WOW) is a diversified retailer, which operates supermarkets, general merchandise stores, liquor, specialty and discount department stores. WOW operated under retail banners that include Woolworths, Safeway, Woolworths Liquor, BWS, Dan Murphy's, Big W, Foodtown, Langtons, Cellarmasters, Countdown, FreshChoice, Croma and Supervalue. In June 2012, WOW operates 1,033 supermarkets under the brands Woolworths and Safeway in Australia, and Countdown in New Zealand; 11 supermarkets under Thomas Dux brand in Sydney & Melbourne; 599 petrol outlets of which 132 are co-branded Woolworths/Caltex; 329 liquor stores under several banners including Dan Murphy's, BWS, Cellarmasters and Langtons; 172 general merchandise stores under the brand Big W; 15 and 21 home improvement stores under the Master and Danks brand; and operates 294 hotels under the ALH brand. WOW also provides financial services to its customers such as credit cards, prepaid credit cards and epump under the Woolworths Everyday Money brand. In 2012, WOW recorded an increase of 4.8% in revenues to AUD52,129.8 million and gross profit increased by 5.7% to AUD14,476.3 million. Net profit fell by 15.1% to AUD1816.7 million this was due to losses associated with the divestment of its wholesale and retail consumer electronics businesses. WOW is rated A3 by Moody’s and A- by Standard & Poor’s. Key Executive Staff Ralph Waters Chairman Ralph Waters was appointed...
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...Resources 10-11 8. Budget 11-15 9. Risk Management 15-16 10. References 16-17 1. Introduction Woolworths is one of the largest retailing companies in Australia. It deals with food and staples. Mr Grant O’Brien is the Managing Director of this company. It holds 190,000 employees across Australia and New Zealand. As it is one of the largest companies in Australia although it’s not a manufacturing industry, it’s indirectly impacting on the environment by producing CO2 through its operation by consumption of electricity and wastage product produced through its day to day operation. By taking this in mind, we decided to work under Woolworths and help it to reduce its carbon emission that is affecting the environment and community as a whole. Therefore, our project will be focused on reducing the impact of carbon emission that is emitted from the day to day operation of Woolworths. 2. Project definition Project “Hello Green” will be fully committed towards the green. Therefore this project will be taking substantial steps to address to today’s emission by reducing the energy uses, focusing on recycling and reducing its carbon footprint as per the standard set by the Australian Government that will be helpful in reducing its overall cost of operations. * To assist Woolworths in maintaining sustainable business. * By assist in reducing energy consumption. * By assist in reducing garbage and waste product. ...
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...variety of groceries line. Countdown has over 160 supermarkets across New Zealand supported by over 18,000 team members. The company delivers customers a choice of more than 20,000 different products in each of stores. The first Countdown supermarket opened in Northlands, Christchurch at 31 December 1981. This business was established by Rattrays Wholesale and gained momentum through the 1980s. The Rattrays Wholesale Group included the Rattrays Cash and Carry warehouses, tobacco vans, now known as the Red Arrow Distributors fleet, and the SuperValue group of franchised supermarkets, now operating as SuperValue/Fresh Choice. Countdown is part of Progressive Enterprises, a subsidiary of the publicly-listed Australian company, Woolworths Limited. In addition to Countdown, Progressive Enterprises is also the franchise co-ordinator for the Fresh Choice and SuperValue banner groups. Countdown works with over 800 food producers and suppliers throughout New Zealand. In-store teams are supported by four dry grocery distribution centres, three fresh produce distribution centres, two meat processing plants, one seafood processing plant and a central support office. Q2---a – internal environmental factors Strength 1. Strong Marketing and advertising teams. Countdown has excellent marketing plans that promote their products in various forms. For example discounts, TV promotions, door to door leafleting, in-store promotional activities (e.g. spending X dollars in exchange...
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